The market for initial public offerings (IPOs) is expected to rebound next year with at least five companies planning to list on the Philippine Stock Exchange (PSE) as the subprime crisis subsides and economic greenshoots appear.
Ed Francisco, president of BDO Capital & Investment Corp. said the IPO market, which ground to a halt in 2008, is set for a revival next year as market conditions improve and volatility continues to normalize.
Among the companies that have signified their intention to go public are Northwind Power, ACM Landholdings, GA or Globe Asiatique Realty Holdings Corp., and Mang Inasal Philippines.
NorthWind Power was organized to develop wind power as a renewable, environment-friendly, and economically feasible source of energy in the country. Located in the northernmost part of the Luzon Island, the company sells electricity to the Ilocos Norte Electric Cooperative (INEC) and provides 40 percent of the power requirements of the province of Ilocos Norte.
ACM Landholdings, on the other hand, is a company involved in the development, construction, marketing and sale of low-to-medium-cost housing in the Philippines.
Globe Asiatique was primarily conceived to support the vision of the government to provide housing for the low income sector.
Meanwhile, Mang Inasal is the fastest growing quick serve restaurant specializing in chicken inasal. From its humble beginning in December 2003, the company now has 154 branches nationwide and counting.
Equity issuance has been minimal as companies preferred to renegotiatewith banks and issue in the bond market to extend maturity profile.
Francisco said movie outfit Viva Communications Inc. is also considering reviving its IPO bid and is just looking for the right time.
Only one firm — Ripple E-Business has so far went public this year compared with two last year — San Miguel Brewery Inc. and Pepsi-Cola Products Philippines Inc. Ripple E is a Filipino software developer.
Francisco said Metro Pacific Tollways Corp. and Anchor Land are also considering doing a follow-on offering to raise funds for their respective expansion program.
At least three companies are also expected to raise funds through a rights offering next year — SM Development Corp., First Gen and Manila Jockey.
source: 5 IPOs lined up for next year
By Zinnia B. Dela Peña (The Philippine Star)
About dragon
Thanks for the listing, I am currently monitoring new IPO listing so I could keep track as to where I should put the eggs on.